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Pensions (Extension of Automatic Enrolment) (No. 2) Bill - Sitting 1

15 March 2023

Proposing MP
David Linden SNP
Glasgow East
Type
Public Bill Committee

At a Glance

Issue Summary

David Linden moves amendments to reduce the age at which automatic enrolment for pensions begins from 22 to 16. David Linden is moving an amendment to extend automatic enrolment for workplace pensions to younger workers and increase pension contributions. The statement discusses the Pensions (Extension of Automatic Enrolment) Bill, which aims to extend pension auto-enrolment benefits to younger workers and part-time employees. The statement discusses the Pensions (Extension of Automatic Enrolment) Bill, focusing on its potential impact on younger people and harder-to-reach groups. The statement discusses the Pensions (Extension of Automatic Enrolment) (No. 2) Bill aimed at expanding automatic enrolment into workplace pensions to include younger workers and lower-paid employees. The statement is about the introduction and progress of the Pensions (Extension of Automatic Enrolment) (No. 2) Bill in a Committee sitting.

Action Requested

The MP proposes amending clauses of the Pensions (Extension of Automatic Enrolment) Bill to lower the starting age for pension contributions, and requests the Government explain their rationale for not supporting this change. He will not press his amendments to a vote.

Key Facts

  • The amendment would reduce automatic enrolment from age 22 to 16.
  • There are approximately 572,000 apprentices at any one time in the UK.
  • The Government has published an impact assessment for age 18 but not for age 16.
  • The amendment aims to lower the age for automatic enrolment from 22 to 16.
  • The current Bill proposes lowering it from 22 to 18.
  • There will be a statutory consultation following the 2017 review.
  • The Pensions Act 2008 introduced the automatic enrolment framework in 2012.
  • By January 2023, 10.8 million people were automatically enrolled into workplace pensions with 2.2 million employers complying.
  • Research shows that about £33 billion was saved in real terms in 2021 compared to 2012.
  • Around 25% of employees in Stoke-on-Trent North, Kidsgrove, and Talke are not auto-enrolled in pension schemes.
  • The Bill will result in roughly an extra third of the part-time workforce being auto-enrolled, representing a 50% increase.
  • Research suggests the change will add almost £3.5 billion to total life savings in these areas.
  • The Bill aims to extend automatic enrolment benefits.
  • Automatic enrolment has increased pension savings among workers since its implementation in 2012.
  • The consultation process involves various stakeholders including employers, trade unions, and advice organizations.
  • Private sector workplace pension participation has increased by 44 percentage points since 2012.
  • Women's participation reached 87% in 2021, surpassing men’s.
  • The Bill will enable every worker to benefit from an employment contribution if they are enrolled or opt-in.
  • A consultation is planned for autumn to discuss the implementation approach and timetable.
  • The Chancellor made an important announcement on pensions prior to the debate.
  • People joked about toping up their pension following the Chancellor's announcement.
  • Rebecca Harris facilitated more progress on Private Members' Bills than previously seen.
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